FOR IMMEDIATE RELEASE
26 November 2014
Asia Wealth Group Holdings Limited
("Asia Wealth" or the "Company")
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 AUGUST 2014
The Board is pleased to report the unaudited Interim Results of Asia Wealth Group Holdings Limited
(“Accounts”) for the period from 1 March 2014 to 31 August 2014. These Accounts have been prepared
under IFRS and will shortly be available via the Company’s website, www.asiawealthgroup.com.
Chairman’s Statement
Financial Highlights
The highlights for the six months ended 31 August 2014 include:
 Consolidated revenue of US$1,100,851 (2013: US$1,065,568)
 Operating profit for Meyer Group of US$423,290 (representing a gross margin of 38%)
(2013:$389,686 & 37%)
 Cash at bank and on hand of US$1.9m at 31 August 2014 (2013:$1.9m).
The Group reports a gain after tax of $.071 million on sales of $1.101 million for the six months ended 31
August 2014. These sales were generated by the Company’s wholly owned subsidiary, Meyer BVI. This rise
in profitability was principally caused by cost savings, although revenue did also increase slightly.
The new Board has taken and is continuing to take steps in cost reduction, as well as expanding revenue
creating opportunities, in both new avenues and existing. Closer ties with Ray Alliance have not yet
produced the anticipated results, but we are confident this will materialize in the future, and the relationship
is important to your company. We continue to seek alliances and partnerships with firms in the same and
new sectors, not only in Singapore but also in the general area.
The entire shareholding in the former subsidiary, Asia Wealth Group Pte. Ltd., was sold on 31 July 2014, as
part of the cost reduction program, and operations in Singapore are now managed from the Bangkok office.
The Company has no debt. Cash balance and net assets have increased by $62,000 and $32,000, respectively,
since 1 March 2014.
Asia Wealth continues to seek investment opportunities in the Asia region and the Directors continue to run
the business in a cost-effective manner.
Richard Cayne
Executive Chairman
Contacts:
Richard Cayne (Executive Chairman)
Asia Wealth Group Holdings Limited, +66 2 2611 2561
Roland Cornish (Corporate Advisers)
Beaumont Cornish Limited, +44 207 628 3396
www.asiawealthgroup.com
EXTRACTS ARE SET OUT BELOW:
ASIA WEALTH GROUP HOLDINGS LIMITED
Consolidated Statement of Financial Position
At 31 August 2014
All amounts stated in U.S. Dollars
Note
Non-current assets
Fixed assets
Investments
Current assets
Cash and cash equivalents
Trade receivables
Prepayments and other assets
3
13
7
$
Total assets
Equity
Share capital
Share-based payment reserve
Consolidation reserve
Translation reserve
Retained earnings
Current earnings
31 Aug 2014
4
5
Current liabilities
Trade payables
Liabilities under finance lease agreement
Other payables and accrued expenses
39,997
318,162
345,033
358,159
1,937,022
261,108
54,665
1,859,452
410,311
53,696
2, 252,795
2,323,459
2,597,828
$
2,681,618
913,496
35,423
403,273
(6,131)
(59,020)
(84,312)
1,292,111
1,202,729
6
4,786
6,877
6
1,275,148
—
25,783
1,431,552
—
40,460
1,300,931
1,472,012
1,305,717
1,478,889
Total liabilities
Total equity and liabilities
26,871
318,162
913,500
35,423
404,227
(2,732)
(129,463)
71,156
Total equity
Non-current liabilities
Liabilities under finance lease agreement
31 Aug 2013
$
2,597,828
$
2,681,618
ASIA WEALTH GROUP HOLDINGS LIMITED
Consolidated Statement of Comprehensive Income
For the half year ended 31 August 2014
All amounts stated in U.S. Dollars
Mar – Aug
2014
Note
Revenue
Mar - Aug
2013
1,100,851
1,065,568
677,561
88,558
89,220
101,832
41,570
12,546
19,658
4,059
2,079
8,014
3,912
3,602
675,882
117,088
86,130
159,016
40,609
18,215
17,383
730
12,142
8,527
4,642
6,942
1,052,611
1,147,306
48,240
(81,738)
—
(10,700)
637
33,940
—
(3,864)
429
1,176
23,877
(2,259)
72,117
(83,997)
(961)
(792)
71,156
(84,789)
—
(477)
Expenses
Commission
Professional fees
Wages and salaries
Directors’ fees
Travel and entertainment
Office expenses
Rent
Marketing expenses
Communication
Depreciation
Bank charges
Sundry expenses
5
7
3
Net profit/(loss) from operations
Other income/(expense)
Initial public offering expenses
Foreign exchange gain/(loss)
Interest Income
Investment income
Net profit/(loss) before finance cost
Finance cost
Interest expense/(income)
Net profit/(loss) before taxation
Taxation
Total comprehensive income
8
2(d)
$
71,156
$
(84,312)
ASIA WEALTH GROUP HOLDINGS LIMITED
Consolidated Statement of Changes in Equity
For the half year ended 31 August 2014
All amounts stated in U.S. Dollars
31 Aug 2014
Share Capital
Note
Balances at beginning of year
Issuance of share capital
Issuance of share options
Issuance of share warrants
Translation differences
Total comprehensive income
4
2(n), 5
2(n), 5
2(f)
Balances at end of year
Share-based
Payment
Reserve
Number
11,433,433
US$
$913,496
—
—
—
—
—
—
$4
—
11,433,433
$913,500
Consolidation
Reserve
Translation
Reserve
Retained
Current
Earnings
Equity
Earnings
$(9,984)
—
—
—
$7,252
—
$(85,207)
—
—
—
—
$(44,256)
—
—
—
—
—
$71,156
$1,259,725
—
—
$405,997
—
—
—
$(1,770)
—
$35,423
$404,227
$(2,732)
$(129,463)
$71,156
$1,292,111
$35,423
—
—
—
—
$5,486
$26,900
31 Aug 2013
Share Capital
Note
Balances at beginning of year
Issuance of share capital
Issuance of share options
Issuance of share warrants
Translation differences
Total comprehensive income
Balances at end of year
4
2(n), 5
2(n), 5
2(f)
Share-based
Payment
Reserve
Number
11,433,433
US$
$913,496
—
—
—
—
—
—
—
—
11,433,433
$913,496
Consolidation
Reserve
Translation
Reserve
Retained
Current
Earnings
Equity
Earnings
$444
—
—
—
$(6,575)
—
$(59,020)
—
—
—
—
—
—
—
—
—
$(84,312)
$1,296,340
—
—
$405,997
—
—
—
$(2,724)
—
$35,423
$403,273
$(6,131)
$(59,020)
$(84,312)
$1,202,729
$35,423
—
—
—
—
$(9,299)
$(84,312)
ASIA WEALTH GROUP HOLDINGS LIMITED
Consolidated Statement of Cash Flows
For the half year ended 31 August 2014
All amounts stated in U.S. Dollars
Mar – Aug
2014
Note
Mar - Aug
2013
Operating activities
Profit/(Loss)
Add back Depreciation
Add back Foreign Exchange Adjustments
Add back Share based payments
Receivables
Prepayments and Deposits
Payables
Trade Creditors and Other Liabilities
71,156
8,014
(38,765)
(18,794)
6,898
61,932
(29,686)
(84,312)
8,527
(9299)
(51,325)
(1,878)
59,843
(28,113)
60,755
(106,557)
Acquisition of fixed assets
1,409
887
Cash flows from investing activities
1,409
887
Cash flows from operating activities
Investing activities
Financing activities
Share issues
-
Cash flows from financing activities
-
-
62,164
(105,670)
Net increase/(decrease) in cash and cash equivalents
1,874,858
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of period
Cash and cash equivalents comprise cash at bank.
-
$
1,937,022
1,965,122
$
1,859,452
1)
GENERAL INFORMATION
Asia Wealth Group Holdings Limited was incorporated in the British Virgin Islands on 7 October 2010
under the BVI Business Companies Act, 2004. The liability of the shareholders is limited by shares.
The Company maintains its registered office in the British Virgin Islands and its financial records and
statements are maintained and presented in U.S. Dollars, rounded to the nearest dollar. The financial
statements were authorised for issue by the Board of Directors.
The principal activity of the Company and its subsidiaries (the “Group”) is to provide wealth
management advisory services to Asia-based high net worth individuals and corporations.
On 16 May 2011, the Company’s shares were admitted to trading on ISDX, formerly PLUS Stock
Exchange, based in London, United Kingdom.
The Company has the following subsidiaries:
Meyer Asset Management Ltd. (“Meyer BVI”)
Meyer International Limited (“Meyer Thailand”)
2)
Incorporation
Date
Country of
Incorporation
Ownership
Interest
2000
2010
British Virgin Islands
Thailand
100%
49%
SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of the Group’s consolidated financial
statements are set out below.
a)
Statement of compliance
The consolidated financial statements of the Group have been prepared in accordance with
International Financial Reporting Standards (“IFRSs”).
b)
Basis of preparation
The consolidated financial statements have been prepared on the basis of historical costs and do
not take into account increases in the market value of assets.
The accounting policies have been applied consistently by the Group and are consistent with
those used in the previous year.
There are no new, revised or amended IFRSs or International Financial Reporting Interpretations
Committee (“IFRIC”) interpretations that are effective for the first time for the financial period
beginning on 1 March 2011 that would be expected to have a material impact on the Group’s
consolidated financial statements.
c)
Use of estimates
The preparation of consolidated financial statements in conformity with IFRSs requires
management to make judgments, estimates and assumptions that affect the application of policies
and the reported amounts of assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, the results of which form the basis of making
the judgments about carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects
both current and future periods.
Critical accounting estimates and judgments
Business combination
Refer to note 2 (d) for the rational behind the use of merger rather than the acquisition accounting
for the consolidation of these financial statements.
Depreciation
Management regularly reviews the estimated useful lives and residual values of the Group’s fixed
assets and will revise rates of depreciation where useful lives and residual values previously
estimated have changed.
Leases
In determining whether a lease is to be classified as an operating lease or a finance lease,
management is required to use their judgment as to whether the significant risks and rewards of
ownership of the leased asset has been transferred or not.
d)
Basis of consolidation
The consolidated financial statements include the financial statements of the Company and its
subsidiaries for the six months ended 31 August 2014.
Details of the Group are set out in note 1.
Subsidiaries are those enterprises controlled by the Company. Control exists when the Company
has the power, directly or indirectly, to govern the financial and operating policies of an
enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are
included in the consolidated financial statements from the date that control commences until the
date that control ceases.
Intra-group balances and transactions, and any unrealised gains arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses
are eliminated in the same way as unrealised gains, but only to the extent that there is no
evidence of impairment.
Business combination under common control
Prior to the acquisitions, all the entities were under common control. Combinations involving
entities or businesses under common control are specifically outside the scope of IFRS 3,
“Business Combinations,” and there is no guidance elsewhere within IFRSs covering such
transactions.
International Accounting Standard 8, “Accounting Policies, Changes in Accounting Estimates
and Errors,” requires that where IFRSs do not include guidance for a particular transaction, the
directors may consider the most recent pronouncements of other standard setting bodies that use
a similar conceptual framework to develop accounting standards. Accordingly, the directors note
that UK Financial Reporting Standard 6, “Acquisitions and Mergers” (“FRS 6”), sets out
accounting guidance for combinations of entities or businesses under common control.
The guidance contained in FRS 6 indicates that merger accounting may be used when accounting
for transactions under common control. Under merger accounting, the carrying values of the
assets and liabilities of the combined entities are not required to be adjusted to fair value on
consolidation. Therefore, goodwill from consolidation of the merged entities is not recognised.
Upon consolidation, the carrying values of the assets and liabilities of the combined entities are
combined from the beginning of the financial year.
e)
Segment Reporting
The Group’s operating businesses are organised and managed separately according to
geographical area, with each segment representing a strategic business unit that serves a different
market. Financial information on business segments is presented in note 10 of the consolidated
financial statements.
f)
Translation reserve
Assets and liabilities of the Group’s non-U.S. Dollar functional currency subsidiaries are
translated into U.S. Dollars at the closing exchange rates at the reporting date. Revenues and
expenses are translated at the average exchange rates for the year. All cumulative differences
from the translation of the equity of foreign subsidiaries resulting from changes in exchange rates
are included in a separate caption within equity without affecting income.
g)
Financial instruments
(i)
Classification
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. These comprise trade receivables.
Financial liabilities measured at amortised cost are non-derivative contractual
obligations to deliver cash or another financial asset to another entity. These comprise
trade payables and other payables.
(ii)
Recognition and derecognition
The Group recognises financial assets and financial liabilities on the date it becomes a
party to the contractual provisions of an instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows
from a financial asset expire or it transfers a financial asset and the transfer qualifies for
derecognition in accordance with IAS 39, “Financial Instruments: Recognition and
Measurement.” A financial liability is derecognised when the obligation specified in a
contract is discharged, cancelled or expired.
(iii)
Measurement
Financial assets classified as loans and receivables are carried at amortised cost using the
effective interest method, less impairment losses, if any.
Financial liabilities are measured at amortised cost using the effective interest method.
(iv)
Specific instruments
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, balances with banks, net of any
overdrafts, and other highly liquid financial instruments with maturities of three months
or less from the date of acquisition.
Receivables
Receivables are recognised initially at fair value and are subsequently recorded at fair
value reduced by any appropriate allowances for estimated irrecoverable amounts. A
provision for impairment of receivables is established when there is evidence that the
Group will not be able to collect amounts due. The Group primarily uses the specific
identification method to determine if a receivable is impaired. The carrying amount of
the receivable is reduced through the use of an allowance account, and the amount of the
loss is recognised in the consolidated statement of comprehensive income.
Payables
Payables are stated at their cost. No interest is incurred on payables.
Share capital
Shares are classified as equity. Incremental costs directly attributable to the issue of
shares are recognised as a deduction from equity.
h)
Offsetting
Financial assets and liabilities are offset and the net amount is reported in the consolidated
statement of financial position whenever the Group has a legally enforceable right to set off the
recognised amounts and the transactions are intended to be settled on a net basis.
i)
Impairment
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, the asset’s
recoverable amount is estimated. The recoverable amount is estimated as the greater of an
asset’s net selling price and value in use. An impairment loss is recognised in the consolidated
statement of comprehensive income whenever the carrying amount of an asset or its cashgenerating unit exceeds its recoverable amount.
If in a subsequent period, the amount of an impairment loss decreases and the decrease can be
linked objectively to an event occurring after the write-down, the write-down or allowance is
reversed through the consolidated statement of comprehensive income.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not
exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment losses had been recognised.
j)
Income and expenditure recognition
In relation to the rendering of services, the Group recognises revenues and fees as time is
expended and costs are incurred, provided the amount of consideration to be received is
reasonably determinable and there is reasonable expectation of ultimate collection of fees.
Interest income and expense are recognised in the consolidated statement of comprehensive
income on the accrual basis.
k)
Leases
Leases of equipment where the Group assumes substantially all the benefits and risks of
ownership are classified as finance leases. Finance leases are capitalised at the estimated present
value of the underlying lease payments. Each lease payment is allocated between the liability
and finance charges so as to achieve a constant rate on the finance balance outstanding. The
corresponding rental obligations, net of finance charges, are recorded as long-term liabilities. The
finance charge is taken to the consolidated statement of comprehensive income over the lease
period. Assets acquired under finance lease agreements are depreciated over their useful lives.
Leases of assets under which all the risks and rewards of ownership are effectively retained by the
lessor are classified as operating leases. Payments made under operating leases are charged to the
consolidated statement of comprehensive income on a straight line basis over the term of the
lease.
When an operating lease is terminated before the lease term has expired, any penalty is
recognised as an expense in the period in which the termination took place.
l)
Fixed assets
Items of fixed assets are stated at cost less accumulated depreciation. Depreciation is charged to
the consolidated statement of comprehensive income on a straight-line basis over the estimated
useful lives of fixed assets.
The annual rates of depreciation in use are as follows:
Leasehold improvements
20%
Office equipment
20-33%
Vehicles
20%
Subsequent expenditure incurred to replace a component of a fixed asset is capitalised only when
it increases the future economic benefits embodied in the item of a fixed asset. All other
expenditure is recognised in the consolidated statement of comprehensive income when it is
incurred.
m)
Taxation
Taxation on net profit before taxation for the year comprises both current and deferred tax.
Current tax is the expected income tax payable on the taxable income for the year, using tax rates
enacted or substantially enacted at the reporting date and any adjustment to tax payable in respect
of previous years in the countries where the Company and its subsidiaries operate and generate
taxable income.
The Group accounts for income taxes in accordance with IAS 12, “Income Taxes,” which
requires that a deferred tax liability be recognised for all taxable temporary differences and a
deferred tax asset be recognised for an enterprise’s deductible temporary differences, operating
losses, and tax credit carryforwards. A deferred tax asset or liability is measured using the
marginal tax rate that is expected to apply to the last dollars of taxable income in future years.
The effects of enacted changes in tax laws or rates are recognised in the period that includes the
enactment date.
n)
Share-based payment
The Group entered into a series of equity-settled, share-based payment transactions, under which
the Group received services from a third party as consideration for equity instruments (shares,
options or warrants) of the Group.
For non-vesting share-based payments, the fair value of the service received in exchange for the
shares is recognised as an expense immediately with a corresponding credit to share capital.
For share-based payments with vesting periods, the service received is recognised as an expense
by reference to the fair value of the share options granted or warrants issued. The total expense is
recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied with a corresponding credit to the share capital reserve.
o)
Foreign currency
Transactions in foreign currencies are converted at the foreign currency exchange rate ruling at
the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
translated into U.S. Dollars at the foreign currency exchange rate ruling at the reporting date.
Foreign currency exchange differences arising on conversion or translation and realised gains and
losses on disposals or settlements of monetary assets and liabilities are recognised in the
consolidated statement of comprehensive income.
Non-monetary assets and liabilities denominated in foreign currencies which are stated at
historical cost are translated at the foreign currency exchange rate ruling at the date of the
transaction, or if impaired, at the date of the impairment recognition. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at fair value are translated into
U.S. Dollars at the foreign currency exchange rates ruling at the dates that the values were
determined.
p)
Amended and newly issued accounting standards not yet adopted
The following new standards and revision and amendment to existing standards are relevant to
the Group’s operations. The Group has not opted to adopt them early and the Group has yet to
assess the full impact on the Group’s consolidated financial statements.
IFRS 10 (new), “Consolidated Financial Statements” 
IFRS 13 (new), “Fair Value Measurement” 
IAS 1 (amended), “Presentation of Financial Statements” 
IAS 27 (revised 2011), “Separate Financial Statements” 
 Effective for annual periods beginning on or after 1 July 2012
 Effective for annual periods beginning on or after 1 January 2013
IFRS 10, “Consolidated Financial Statements”
The objective of this new standard is to establish principles for the presentation and preparation
of consolidated financial statements when an entity controls one or more other entity (an entity
that controls one or more other entities) to present consolidated financial statements. It also
defines the principle of control, and establishes controls as the basis for consolidation. It sets out
how to apply the principle of control to identify whether an investor controls an investee and
therefore must consolidate the investee and sets out the accounting requirements for the
preparation of the consolidated financial statements.
IFRS 13, “Fair Value Measurement”
IFRS 13 aims to improve consistency and reduce complexity by providing a precise definition of
fair value and a single source of fair value measurement and disclosure requirements for use
across IFRSs. The requirements, which are largely aligned between IFRSs and US GAAP, do not
extend the use of fair value accounting but provide guidance on how it should be applied where
its use is already required or permitted by other standards within IFRSs or US GAAP.
IAS 1, “Presentation of Financial Statements”
The amendment clarifies that an entity will present an analysis of other comprehensive income
for each component of equity, either in the statement of changes in equity or in the notes to the
financial statements.
IAS 27, “Separate Financial Statements”
IAS 27 (revised 2011) includes the provisions on separate financial statements that are left after
the control provisions of IAS 27 have been included in the new IFRS 10.
3)
FIXED ASSETS
Leasehold
improvement
Office
equipment
Vehicles
Total
Cost:
At 28 February 2014
Gain (Loss) on exchange
Additions
At 31 August 2014
20,281
(1,085)
19,196
25,823
(5,113)
1,429
22,139
40,223
(2,151)
38,072
86,327
(8,349)
1,429
79,407
Depreciation:
At 28 February 2014
Gain (Loss) on exchange
Charge for 1 March – 31 August 2014
12,874
(1,490)
1,935
13,191
(2,371)
2,251
25,286
(2,968)
3,828
51,351
(6,829)
8,014
At 31 August 2014
13,319
13,071
26,146
52,536
Net book value:
At 31 August 2014
$5,877
$9,068
$11,926
$26,871
At 28 February 2014
$7,407
$12,632
$14,937
$34,976.
As at 31 August 2014, the Group had fixed assets under a finance lease agreement (refer to note 6) with a
net book value of $11,926 (28 Feb 2014: $14,937).
4)
SHARE CAPITAL
Authorised
The Company is authorised to issue an unlimited number of no par value shares of a single class.
Issued and fully paid:
11,433,433 shares of no par value per share (28 Feb 2014 : 11,433,433 shares of no par value per share).
5)
SHARE-BASED PAYMENTS
Options
The total share options reserve as at 31 August 2014 amounted to $26,402 (2013: $26,402).
Share options outstanding at the end of the half year have the following expiry date and exercise price:
Grant Date
Expiry Date
1 July 2013
30 September 2012
30 July 2013
1 July 2016
26 May 2017
29 July 2017
Exercise Price
£0.60
£0.60
£0.60
31 Aug 2014
31 Aug 2013
260,000
50,000
100,000
260,000
50,000
100,000
Warrants
On 16 May 2011, the Company issued share warrants to BCL to subscribe for 55,444 shares, in
accordance with the terms of its Agreement. The warrants are exercisable at the placing price for a
period of 5 years. The total share warrants reserve as at 31 August 2014 amounted to $9,021 (28 Feb
2014: $9,021).
Share warrants outstanding at the end of the year have the following expiry date and exercise price:
Grant Date
Expiry Date
16 May 2011
1 July 2016
Exercise Price
£0.60
31 Aug 2014
31 Aug 2013
55,444
55,444
The fair value of the options granted and warrants issued during the year determined using the BlackScholes valuation model was £0.102 (28 Feb 2014: £0.102). The significant inputs into the model were
the share price of £0.60 (28 Feb 2014: £0.60) at the grant date, exercise price shown above, volatility of
10% (28 Feb 2014: 10%), dividend yield of 0% (28 Feb 2014: 0%), an expiry date of 5 years (28 Feb
2014: 5 years) and an annual risk-free interest rate of 3% (28 Feb 2014: 3%).
6)
LEASES
Finance lease
Liabilities under finance lease agreement:
Less than 1 year
31 Aug 2014
31 Aug 2013
3,411
3,397
1 to 5 years
7,960
14,722
Total
Less: Deferred interest
11,371
( 810)
18,119
( 1,490)
Less: Current portion
10,561
( 3,124)
16,629
( 3,038)
Net
$7,437
$13,591
Operating lease
As at 31 August 2014, the Group has non-cancellable operating lease commitments as follow:
Payable within:
Less than 1 year
1 to 5 years
Total
7)
31 Aug 2014
31 Aug 2013
15,616
31,231
6,770
-
$46,847
$6,770
RELATED PARTY TRANSACTIONS
During the half year, the Group paid director’s fees amounting to $101,832 (2013: $159,016).
8)
TAXATION
There is no mainstream taxation in the British Virgin Islands. The Company and Meyer BVI are not
subject to any forms of taxation in the British Virgin Islands, including income, capital gains and
withholding taxes.
Meyer Thailand is subject to Thailand graduated statutory income tax at a rate of 0-20% on profit before
tax.
The current tax expense included in the consolidated statement of comprehensive income relates to the
following subsidiaries:
31 Aug 2014
Meyer Thailand
Asia Wealth Group Pte. Ltd.
The Group had no deferred tax assets or liabilities as at the reporting date.
9)
SEGMENTAL INFORMATION
31 Aug 2013
-
.
.
- .
(477)
$ -
.
$ (477)
The Group has three reportable segments based on geographical areas where the Group operates and
these were as follows:
British Virgin Islands (“BVI”) – where the Company and Meyer BVI are domiciled. The Company
serves as the investment holding company of the Group and Meyer BVI provides wealth management
and advisory services.
Thailand – where Meyer Thailand is domiciled and provides marketing and economic consulting
services to the Group.
The reportable segments’ revenue, other profit and loss disclosures and assets were as follows:
Revenue
31 Aug 2014
Intersegment
revenue
Revenue
from
external
customers
Total
segment
revenue
1,100,851
129,604
-
(129,604)
-
1,100,851
-
$1,230,455
$(129,604)
$1,100,851
Total
segment
revenue
BVI
Thailand
Singapore
Total
31 Aug 2013
Intersegment
revenue
Revenue
from
external
customers
1,065,286
128,370
103,858
- .
(128,088)
(103,858)
1,065,286
282
-
$1,297,514
$(231,946)
$1,065,568
The revenue between segments is carried out at arm’s length.
Other profit and loss disclosures
31 Aug 2014
Commission
expense
BVI
Thailand
Singapore
Total
31 Aug 2013
Depreciation
677,561
- .
- .
496
7,518
- .
$677,561
$8,014
Income
tax
Commission
expense
- .
- .
- .
675,882
- .
- .
266
7,532
729
- .
- .
(477)
$675,882
$8,527
$(477)
$
-
.
Depreciation
Income
tax
Assets
31 Aug 2014
Total Assets
Non-current
assets
31 Aug 2013
Total Assets
Non-current
assets
BVI Companies
Thailand
Singapore
Total
2,470,285
127,543
-
- .
34,575
-
2,516,950
129,958
34,710
- .
44,826
2,915
$2,597,828
$34,575
$2,681,618
$47,741
Intersegment assets amounting to $495,071 (2013: $570,081) were already eliminated in the total assets
per segment above.
Revenues from two customers of the BVI segment represent approximately 81% (31 Aug 2013: 82%) of
the Group’s total revenues.
10)
FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS
Financial assets of the Group include cash and cash equivalents and trade receivables.
liabilities include trade payables and other payables.
a)
Financial
Market risk
Market risk represents the potential loss that can be caused by a change in the market value of the
Group’s financial instruments. The Group’s exposure to market risk is determined by a number
of factors which include interest rate risk.
Interest rate risk
The financial instruments exposed to interest rate risk comprise cash and cash equivalents.
The Group is exposed to interest rate cash flow risk on cash and cash equivalents, which earn
interest at floating interest rates that are reset as market rates change. The Group is exposed to
interest rate risk to the extent that these interest rates may fluctuate.
A sensitivity analysis was performed with respect to the interest-bearing financial instruments
with exposure to fluctuations in interest rates and management noted that there would be no
material effect to shareholders’ equity or net income for the year.
b)
Credit risk
Credit risk represents the accounting loss that would be recognised at the reporting date if
financial instrument counterparties failed to perform as contracted.
As at 31 August 2014, the Group’s financial assets exposed to credit risk amounted to the
following:
31 Aug 2014
Cash and cash equivalents
Trade receivables
31 Aug 2013
1,937,022
261,108
1,859,452
410,311
$ 2,198,130
$ 2,269,763
The ageing of the Group’s trade receivables as at 31 August 2014 is as follows:
31 Aug 2014
Gross
1 – 90 days
91 – 180 days
Impairment
78,609
182,499
$261,108
31 Aug 2013
$
Gross
-
269,531
140,780
-
$410,311
Impairment
$
-
The Group invests all its available cash and cash equivalents in several banks. The Group is
exposed to credit risk to the extent that these banks may be unable to repay amounts owed. To
manage the level of credit risk, the Group attempts to deal with banks of good credit standing,
whenever possible.
The Group has two significant customers which expose it to credit risk, though the exposure to
credit risk is reduced as these customers have a good working relationship with the Group. To
reduce exposure to credit risk, the Group performs ongoing credit evaluations on the financial
condition of its customers, but generally does not require collateral.
b)
Credit risk
The extent of the Group’s exposure to credit risk in respect of these financial assets approximates
their carrying values.
c)
11)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they
fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
Typically, the Group ensures that it has sufficient cash on demand to meet expected operational
needs as they arise.
FAIR VALUE INFORMATION
Fair value estimates are made at a specific point in time, based on market conditions and information
about the financial instrument. These estimates are subjective in nature and involve uncertainties and
matters of judgment and therefore, cannot be determined with absolute precision. Nevertheless, fair
values can be reliably determined within a reasonable range of estimates.
12)
CAPITAL RISK MANAGEMENT
The Group’s objectives when managing capital are:


to safeguard the Group’s ability to continue as a going concern; and
to provide adequate returns to its shareholders
In order to maintain or balance its overall capital structure to meet its objectives, the Group is
continually monitoring the level of share issuance and any dividend declaration and distributions to
shareholder(s) in the future.
13)
INVESTMENT
On 8 June 2012, the Company acquired a 15 per cent. equity stake in Ray Alliance in exchange for the
issue of 322,000 new Shares in Asia Wealth.
In the financial year ended 31 December 2013, Ray Alliance had a net loss of S$101,000 (2012 S$ profit
17,000) on revenue of S$2.7 million (2012 S$2. 4 million).
The equity investment in Ray Alliance is held at fair value under IAS39. No accounting policy on
financial assets valuation or impairment has yet been formalised, and it is likely that this would in any
case not have a material effect on the valuation of the investment.
14)
SUBSEQUENT EVENTS
None